First home buyer accounts scrapped

Australians saving for their first home will no longer receive government contributions and tax breaks.

The first home saver accounts scheme established by the Rudd government in 2008 has been scrapped as it has done little to improve housing affordability, Treasurer Joe Hockey said.

There were 46,000 accounts at the end of December, containing $521 million.

Government co-contributions to the accounts will end on July 1 and their associated tax and social security concessions will be withdrawn from July 2015.

Any new accounts opened after Tuesday's budget announcement will not attract any government co-contributions or tax breaks.